Sebi has imposed a total penalty of Rs 12 lakh on three entities for alleged non-compliance with the market regulator's summons, related to its probe on charges of fraudulent trading activities by Sanjay Dangi and associated entities.
In three separate orders, the Securities and Exchange Board of India (Sebi) has slapped a fine of Rs 6 lakh on Yaduka Financial Services and Rs 3 lakh each on Micro Management Ltd and Calcom Consultancy Services.
As per Sebi's show cause notices, the entities allegedly failed to give necessary information sought by the regulator's Investigation Authority (IA) regarding a probe into the alleged share price manipulation by Sanjay Dangi and other entities in scrips of various companies.
The regulator through its summons had sought information regarding their connection and business transactions with entities which were allegedly involved in fraudulent dealings.
"...it was very important for Sebi to have received such information and by not submitting the required information, the noticee has substantially impaired the investigation process," Sebi said in the order against Yaduka dated July 30.
While in the other two orders also issued on July 30, Sebi noted that "not submitting complete details/information to the summonses appears to be a deliberate action on the part of the noticee to not cooperate with the regulatory mechanism, especially when sufficient time and opportunity was provided".
Sebi had passed an interim order in December 2010 banning Dangi, his associates and promoters of four firms -- Murli Industries, Hubtown, Brushman (India) and Welspun - Gujarat Stahl Rohren.
The order was based on a preliminary probe, which had found a well-planned strategy to manipulate the share price of the companies before the issuance of the Foreign Currency Convertible Bond (FCCBs).
It was prima facie observed in the interim order that the Dangi Group along with the promoters of various companies had indulged in fraudulent and unfair trade practices relating to the securities market, among others.